Business Standard

Sebi's higher float proposal for IBC firms could run into hurdles

Several legal experts plan to highlight the challenges in implementing all three options recommended by the regulator

Sebi
Premium

The move to seek higher float was triggered by eye-popping rise in shares of Ruchi Soya Industries.

Samie Modak Mumbai
The Securities and Exchange Board of India’s (Sebi’s) proposal to entail higher free-float for companies relisting after insolvency proceedings may run into implementation hurdles. Several legal experts plan to highlight the challenges in implementing all the three options recommended by Sebi in a discussion paper floated by it last week.

In the discussion paper —Recalibration of threshold for Minimum Public Shareholding (MPS) norms, enhanced disclosures in Corporate Insolvency Resolution Process (CIRP) cases — the market regulator has proposed that companies should achieve at least 10 per cent public shareholding within six months of re-listing. Currently, those relisting after CIRP are given

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 25 2020 | 11:19 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com